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DoF firm on keeping stimulus at P173B

FINANCE SECRETARY CARLOS G. DOMINGUEZ III — SEONGJOON CHO/BLOOMBERG

FINANCE Secretary Carlos G. Dominguez III said the government can only provide P173 billion in stimulus funds this year, as it is unsustainable to have the fiscal deficit exceed 9.3% of gross domestic product (GDP).

“If we are going to have another round of Bayanihan stimulus package this year, the economic team will work with Congress on looking for funding sources to ensure that it will not further widen our deficit,” Mr. Dominguez told reporters via Viber on Wednesday.

“It will be very unsustainable if we will have a fiscal deficit higher than what we estimated this year,” he said separately in a Senate hearing on Tuesday, as lawmakers consider a third stimulus package.

The economic team capped this year’s budget deficit at 9.3% of GDP.

Mr. Dominguez said they are “internally looking for the sources” to finance at least P173 billion of the proposed Bayanihan III. He said this package should be aimed at combating poverty and hunger, after the pandemic dealt a heavy blow on poor families.

Last year, the government allocated P275 billion for relief measures under Republic Act No. 11469 or the Bayanihan to Heal as One Act (Bayanihan I), followed by a second package worth P160 billion.

The House of Representatives passed House Bill 9411 or the Bayanihan to Arise as One Bill (Bayanihan III) which will provide more than P400 billion to help unemployed and hungry Filipinos amid a coronavirus pandemic.

Senator Juan Edgardo M. Angara on Wednesday said the Senate will tackle the third stimulus package when session resumes on July 26.

“Well the Bayanihan II expires at the end of this month. So siguro when Congress resumes, we can hear the different measures. It’s the right time to have hearings on Bayanihan III,” Mr. Angara, chair of the Senate Committee on Finance, said  at the Kapihan sa Manila Bay. “So end of July, mag-hearing tayo diyan.”

Meanwhile, Mr. Dominguez said they will remain open to Bayanihan III if lawmakers can identify other potential revenue-generating measures.

However, he said the Department of Finance (DoF) is not proposing any tax hikes to boost revenues, but instead looked for savings from the 2020 budget and asked state-run firms to increase their dividend remittances to P47.17 billion this year.

As of end-May, government-owned and -controlled corporations remitted P31.38 billion to the National Government.

FISCAL SPACE
The government faces growing fiscal constraints as the coronavirus pandemic persists.

Under National Budget Memorandum No. 141 published on Wednesday, the Department of Budget and Management (DBM) said the fiscal space is projected to shrink to P329.8 billion next year, or equivalent to 6.6% of the proposed P5.024-trillion 2022 budget.

This is drastically lower than the average fiscal space worth P714.4 billion each year from 2017-2021. The DBM identifies these excess funds to fund new and expanded programs every year.

More than half of next year’s budget or P2.743 trillion will be earmarked to ongoing programs and projects while 38.8% or P1.951 trillion will be allotted for automatic appropriations, which includes allocations to local government units, the National Disaster Risk Reduction and Management Fund, and the Contingent Fund.

DBM Secretary Wendel E. Avisado asked line agencies to “focus on the more pressing priorities” in crafting their budget proposals because of the limited fiscal space next year.

The government released P653.4 billion for its pandemic response as of April 15, according to the DBM. — Beatrice M. Laforga with inputs from Vann Marlo M. Villegas

Building material price growth eases in May

PHILIPPINE STAR/ MICHAEL VARCAS

THE GROWTH in retail prices of construction materials in the National Capital Region (NCR) eased in May, the Philippine Statistics Authority (PSA) said on Wednesday.

Data from the PSA showed the NCR construction materials retail price index, which measures changes in the average retail prices of construction materials in the region, registered an annual growth of 1.2% in May, a tad slower than the 1.3% logged in April.

May’s preliminary result was driven by slower pickup in prices of carpentry materials (1.5% from 1.8% in April) and masonry materials (1.5% from 1.6%).

The year-on-year growth in other commodities remained unchanged when compared with the previous month: tinsmith materials (1.8%), painting materials and related compounds (0.9%), and plumbing materials (0.7%).

On the other hand, the indices for miscellaneous materials and electrical materials showed faster annual growth with 1.5% and 0.8%, respectively, from 1.2% and 0.5% in April.

In an e-mail, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa attributed the slight easing of prices in May to the stoppage of some construction activities in April when stricter lockdown measures were implemented in Metro Manila and adjacent provinces.

The so-called NCR Plus was placed under an enhanced community quarantine (ECQ) from March 29 to April 11 amid a surge in coronavirus disease 2019 (COVID-19) cases. This was later relaxed to a more lenient modified ECQ from April 12 to May 14.

“Given expectations for faster economic growth and a resumption of construction activities, we can expect the index to accelerate in the coming months,” Mr. Mapa said.

“On top of demand dynamics, we are noticing a gradual uptick in global prices for commodities due to supply bottlenecks, a container shortage and the acceleration of growth in China and the US. Thus, we can expect construction materials to see an uptick in prices in the coming months with both the domestic and global economic activity accelerating,” he added. — Bernadette Therese M. Gadon

Megaworld’s REIT plans to raise P27B from IPO

RICHMONDE Tower in Iloilo Business Park

By Cathy Rose Garcia, Managing Editor

MEGAWORLD Corp. is putting 10 of its key office assets into a real estate investment trust (REIT) that is aiming to sell up to P27.3-billion worth of shares in an initial public offering (IPO).

According to a prospectus filed with the Securities and Exchange Commission (SEC) on Wednesday, MREIT, Inc. is planning to offer secondary shares of up to 1.239 billion common shares at a maximum price of P22 per share.

“We are going to launch the largest REIT in the country. This will be the largest IPO of a REIT. We are launching a total asset size of about P55.6 billion for 10 properties. The size of the offering will be around P27.3 billion (including overallotment),” Kevin Andrew L. Tan, Megaworld chief strategy officer and MREIT president, told reporters on Wednesday.

The offer shares represent 49% of the company’s total issued outstanding capital stock, assuming the overallotment option is fully exercised. Megaworld will retain the remaining 51%.

Through a property-for-share swap, Megaworld put in 10 office, retail and hotel assets with a combined gross leasable area of 224,430 square meters (sq.m.) into MREIT.

The buildings are located within Megaworld’s major townships — Eastwood City in Quezon City, McKinley Hill in Bonifacio Global City, and Iloilo Business Park in Mandurriao, Iloilo City.

Included in the portfolio are: 1800 Eastwood Avenue, 1880 Eastwood Avenue, E-Commerce Plaza, One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, One Techno Place, and Richmonde Tower, which houses Richmonde Hotel Iloilo.

Mr. Tan emphasized that they chose only the office buildings with “Tier 1” tenants, mostly business process outsourcing (BPO) companies. He noted these office buildings have around 95% occupancy, with most lease contracts between five to 10 years.

“We have carefully selected the properties that we will be putting in here. We selected them for the quality of the buildings… and for the diversity, which includes location… We only choose those with the best quality tenants, superior BPOs. No POGOs (Philippine offshore gaming operators),” Mr. Tan said.

While only 10 of Megaworld’s office assets are included in MREIT, the company has identified four more to be injected in the next four years.

“Today, it’s 10 properties but Megaworld has 70 buildings, we have 1.4 million sq.m. (in office space). What we’re launching in the REIT is only 224,000 sq.m. and every year Megaworld builds an average of 100,000 sq.m. a year. In the last two years, we slowed down a bit… but we will accelerate again next year,” Mr. Tan said.

NGCP to seek bids for reserve power services

BW FILE PHOTO

By Angelica Y. Yang, Reporter

PRIVATELY-led National Grid Corp. of the Philippines (NGCP) said on Wednesday that it would hold a competitive public bidding for the supply of power reserves or ancillary services (AS) to fulfill government requirements and secure the “best value” for consumers.

“We want to guarantee the best pricing for AS, especially since this is a pass-on cost to consumers. With an open and public bidding process, we ensure full transparency and comply with internal governance imperative of accountability, which all our stakeholders deserve,” NGCP President and Chief Executive Officer Anthony L. Almeda said in an e-mailed statement.

AS are support services that help maintain the electric grid’s quality, reliability and security.

However, the NGCP official said that procuring reserves on either firm or non-firm arrangements will not solve the recurring brownouts or power interruptions.

“What we have is a supply and not a distribution problem. For the grid to effectively address imbalances between supply and demand, we need to increase the power capacity of the country to meet rising demand as we start to recover and fully reopen the economy,” he said.

Mr. Almeda reiterated NGCP’s stand that full firm contracting of reserves, which the Department of Energy (DoE) has mandated, will “only lead to a change in payment terms where all the power, used or unused, will be shouldered by the public.”

‘URGENT’ NEED FOR RESERVES
Separately on Wednesday, the Philippine Independent Power Producers Association, Inc. (PIPPA) said fulfilling the country’s need for ancillary services and allowing the entry of new plants would lessen the effects of forced outages on the power grid.

“There is an urgent need to fill in the ancillary services requirement of the grid and complement it with additional capacity with the entry of new plants. This combination will ensure that the impact of forced outages will be minimal or at a best-case scenario, no blackouts,” PIPPA said in an e-mailed statement.

The DoE previously flagged NGCP for not procuring enough firm-contracted reserves for the grid as of end-2020.

Last week, NGCP explained that if it implements the 100% firm-contracted requirement for AS, consumers will see spikes in their power bills — with typical households in Luzon, Visayas and Mindanao seeing increases of P128, P108, and P278 in their monthly electricity bills, respectively.

According to a DoE circular issued in 2019, NGCP is required to fully procure firm-contracted reserves to guarantee the grid’s reliability.

“(We) value compliance and strive for transparency and adherence to the industry’s rules and regulations,” PIPPA said, adding that it “fully supports the policies that will result to stability, security, and reliability in the energy system.”

The group added that it is awaiting the completion of transmission and connection projects, including the Mindanao-Visayas Interconnection Project (MVIP), which will link the Mindanao and Visayas grids. Once this happens, the country will be connected under one grid.

“In particular, for Mindanao, we would like to see the interconnection happen as there is currently an oversupply of energy which can be tapped and used properly,” PIPPA said, referring to the MVIP’s goal of allowing excess power to be exported where it is needed, subsequently helping prevent shortages.

“By linking the three grids and with firm contracting as per the mandate of the DoE, we can be confident that we have investors entertaining the build of new plants,” it added.

In February, NGCP reported that the interconnection project might not be completed by the end of this year after discovering portions of its fiber optic cable to be damaged.

The system operator earlier placed the Luzon grid under red alert, triggering rotating brownouts in portions of the major island for three consecutive days amid higher temperatures and forced plant shutdowns. A red alert notice is declared if the supply-demand balance deteriorates, bringing the possibility of power interruptions.

Mindanao Rail consultancy contract seen in June

By Arjay L. Balinbin, Senior Reporter

THE Transportation department is expecting to award the project management consultancy services contract of the Mindanao Railway Project (Tagum-Davao-Digos segment) this month, an official said on Wednesday.

Ito pong buwan na ito, tayo po ay umaasa na mai-award na po natin ‘yung kontrata doon po sa ating project management consultant (We are hoping to award the contract to the project management consultant this month),” Transportation Undersecretary Timothy John R. Batan said at a virtual press briefing.

The Department of Transportation announced in December last year its invitation to shortlisted Chinese consultants to submit bids for the project management consultancy services contract.

The China-funded project has an approved budget of P3.09 billion for the consultancy services.

The department requires the completion of the detailed design and works within 17 months, with 33 months set as the period for the contractor to be engaged in pre-construction activities and the defects notification period.

The railway project, one of the Duterte administration’s priority infrastructure projects, was originally scheduled to start construction in January 2019 but right-of-way issues, mainly in Davao City, held back the timetable.

The railway’s P82.9-billion first phase, covering the 100.2-kilometer Tagum-Davao-Digos segment, is financed through an official development assistance package from the Chinese government.

D&L plans to offer up to P5-B fixed-rate bonds

BW FILE PHOTO
PROCEEDS will be used to partially finance the company’s capital expenditures. — BW FILE PHOTO

D&L Industries, Inc. has filed with the Securities and Exchange Commission a registration statement and a preliminary prospectus for its P3-billion fixed-rate bonds, with an oversubscription option of up to P2 billion.

The offer will consist of three-year series A bonds due 2024 and five-year series B bonds due 2026, which will be listed and traded on the Philippine Dealing & Exchange Corp. once the company receives regulatory approvals.

If the oversubscription option is exercised, D&L expects to raise P5 billion in proceeds, which will be used to partially finance its capital expenditures (capex), repay bridge loans and interest costs incurred to fund its capex, and for other general corporate purposes.

“Capital expenditures related to the Batangas expansion project has been ongoing since the past year,” D&L said in its preliminary prospectus.

The facility in Batangas is being built on a 26-hectare property in First Industrial Township – Special Economic Zone. It will cater to D&L’s export business in the food and oleochemicals segment.

The expansion is said to be instrumental in the development of more coconut-based products and in the company’s plan to expand in new international markets.

“It will add the capability to manufacture downstream packaging, thus allowing the company to capture a bigger part of the production chain,” D&L said.

The company has been funding the project through bridge financing of short-term loans from partner banks.

“D&L intends to repay these bridge loans from the proceeds of the offer,” the company said.

The company engaged China Bank Capital Corp. as the sole issue manager, lead underwriter, and sole bookrunner for the offering.

D&L shares at the stock exchange improved by 2.13% or 17 centavos on Wednesday, closing at P8.15 each. — Keren Concepcion G. Valmonte

917Ventures: health technology demand surges

917Ventures, Globe Telecom, Inc.’s corporate venture builder, said on Wednesday that demand for services offered by its health technology platforms, KonsultaMD and HealthNow, is increasing as the pandemic crisis continues.

“Consultations made through KonsultaMD skyrocketed by 461% in 2020 compared to the previous year,” 917Ventures said in a statement.

Since its launch in August last year, the HealthNow mobile application has been downloaded over 240,000 times, it also noted.

KonsultaMD has been offering healthcare services for the past five years. The telehealth company has worked with the Health department to provide free telemedicine consultation to residents in the Philippine capital.

HealthNow, a collaboration between 917Ventures and ACHealth (Ayala Healthcare Holdings, Inc.), offers online consultations, medicine delivery, clinic appointments, and laboratory services.

917Ventures Managing Director Vince Yamat said, “We continue to reinvent lifestyle and movement through different products and services in the areas of health, e-commerce, financial technology, and advertising technology that deliver indelible value to consumers and businesses.”

Other Globe companies under 917Ventures are AdSpark, GCash, PureGo, and Rush.

“Being a venture builder, the company is constantly on the lookout for new ideas to launch and accelerate, to further improve the lives of Filipinos,” 917Ventures said. — Arjay L. Balinbin

Jollibee offers discount to vaccinated customers

THE Jollibee Group offers 10% discount for its vaccinated customers to make dining in even more rewarding.

SEVERAL brands under Jollibee Foods Corp. are offering vaccinated customers a 10% discount as part of a private sector initiative to encourage the public to get inoculated against the coronavirus disease 2019 (COVID-19).

“This discount promo is our way to thank our customers for getting vaccinated,” Jollibee Group Chief Sustainability and Public Affairs Officer Jose Miñana said in a statement on Wednesday.

“The vaccine is the solution that we have been waiting for to protect ourselves and our loved ones, as well as help revive our economy and livelihoods,” he added.

Vaccinated customers of Jollibee, Chowking, Mang Inasal, Greenwich, Red Ribbon, Burger King, Panda Express, and PHO24 may avail of the discount by presenting their vaccine card along with a valid ID. Specific terms for each discount promo are also available on the brands’ Facebook pages.

The 10% off promo may be availed for as many times as they want when they dine in at the restaurants until the end of August.

More than 150 restaurants in the NCR (National Capital Region) Plus bubble are part of the Smart Bakuna Benefits program of the private sector-led campaign, Ingat Angat. The full list of participating brands is available on www.ingat-angat.com/benefits.

Jollibee shares at the stock market closed lower by 3.81% to finish at P206.80 apiece. — Keren Concepcion G. Valmonte

Thai on a cloud

SOM Tam or Papaya Salad

Trying out chef Rob Pengson’s new cloud kitchen chicken restaurant

By Joseph L. Garcia, Reporter

PERHAPS it’s because Thailand was never really colonized by any European power, but nobody quite does Asian-tropical food quite like the Thais. Heavier colonial fare’s influence on its cuisine is minimal. Its dishes hit a sweet spot of being lively and light enough for days under the sun, but with enough heft and gravity to warm up the belly during one of the region’s rainstorms.

We were able to think of this while munching on treats from Miam Miam during a hot day last week. Miam Miam sent over a tray of its fried chicken, pad thai, and bagoong rice, and suddenly, sitting in the heat stopped being a chore.

The name itself isn’t even completely Thai, according to founder and celebrity chef Rob Pengson, who developed the dishes with his team (and especially giving thanks to his chef de cuisine). Miam Miam comes from a French phrase children use to say “yummy,” which Mr. Pengson overheard while in France many years ago, he said during a Zoom call earlier this week.

While developing the menu for different concepts, everybody at the table — partners and staff alike — liked the Thai offerings so much that they pushed the Thai dishes ahead of the others in line: through a cloud kitchen network, Mr. Pengson is developing about five brands at present, with a wings concept coming next. This comes at the heels of his present venture, a tapas bar called Beso Beso, which might open its rooftop for small events; but which is currently offering party trays and private dining at home.

CHOOSING CHICKEN
Going back to the name, its French provenance also allows for some slack when it comes to strict authenticity. “We’re not full-on traditional Thai,” said Mr. Pengson. “It can accept some kind of fusion from other cultures.”

For example, the pad thai, a spicy fried noodle dish, did not have the traditional prawns or chicken as in the original. For weight and flavor, Miam Miam’s version uses mushrooms. This is influenced by Mr. Pengson’s plant-forward diet, having been vegan for a period. “What we wanted was to strike a balance,” he said, citing that while he felt the benefits of a vegan diet on his health and planet’s, the lifestyle is still a bit away from the mainstream, and it wouldn’t be as popular. “We have to be realistic about it.” As a compromise, while Miam Miam is billed as a fried chicken brand, it has vegetarian and vegan options, such as the aforementioned pad thai, and the som tam papaya salad.

Asked why they decided on building their brand on chicken, their own market research via food delivery apps showed that “Fried chicken is very easy. Fried chicken is the number-one seller, everywhere in the Philippines,” said Mr. Pengson. “You have to have a version of fried chicken.”

The pad thai, by the way, was delicious. It was scattered with spring onions and herbs and had a spiciness that flirted with, and not bruised the tongue. The bagoong rice, laden with strips of green mango, was a similarly tasty experience. It’s unfortunate that the vibrancy of these dishes would outshine the fried chicken itself though.

The chicken is good — very good. It’s crispy, and it hits the right notes, and with a dip made from fish sauce, vinegar, herbs, and chili, it feels like a vacation in Thailand. “Every time we eat it here in the office, everyone always goes ‘miam miam,’” said Mr. Pengson.

We also have to commend the brand for delivering the chicken from Makati to Quezon City, and finding it steaming and still crispy. Not even the chicken chain a 15-minute walk from my house could do that. Still, sitting beside more flamboyant siblings like the pad thai, its flagship product takes a backseat.

CLOUD KITCHENS VS BRICK AND MORTAR
“The plan for the F&B brands is eventually to have brick and mortar restaurants,” he said. But of course, this is the plan for when things are safer and better. In the meantime, he and his team are making do with cloud kitchens. Weighing the advantages of a cloud kitchen vs a real restaurant, he said, “Less costs, for sure. But it’s a different game.”

“The pros are lower costs, and you can scale up to as many brands as your operations can handle. But for us, we want quality, so we’re only looking at five brands, max,” he said. On the other hand, “The cons are, everyone’s selling online, so it’s a completely saturated and competitive market. You have to really find ways to stand out.”

Cloud kitchens aren’t the only things Mr. Pengson has picked up from the ongoing COVID-19 pandemic. He gives his observations on how disaster after disaster on the restaurant industry has changed the atmosphere in kitchens. “More people treat each other more like colleagues now, and not like competitors,” he said. “Now, everyone takes care of each other.

“I think the industry gave a lot of attention to things that aren’t — I’ll use the word — essential. There was a lot of luxury, and vanity strategies: trying to get on this list, that award. But in reality, it’s good to be practical.”

To order from Miam Miam, call 0966-795-6709, message @miammiamchickenph on Instagram or @miammiamthaichicken on Facebook. It accepts orders from Monday to Sunday, 10 a.m. to 9 p.m., and is located at 257 Don Chino Roces Ave. Ext., Makati.

Alliance Select incurs losses on weak demand

ALLIANCE Select expects its automation and equipment upgrade to improve the company’s production efficiency. — CORPORATE.ALLIANCESELECTFOODS.COM/

ALLIANCE Select Foods International, Inc. incurred net attributable losses in 2020 and in the first quarter of 2021 due to a slump in market demand caused by the health crisis.

“The prolonged COVID-19 (coronavirus disease 2019) pandemic has weakened market demand and resulted in higher freight and raw material costs,” the company said in a statement on Wednesday.

Alliance Select posted a $521,006 net loss attributable to equity holders of the parent company in the January-to-March period, a reversal of its $26,990 profit in the same period last year.

The company’s topline amounted to $8.58 million in the first quarter, 46% lower than $15.94 million in the same period in 2020 as higher freight costs led to deferred shipments.

“We have taken several initiatives to improve our market share in Asia and North America. Likewise, our recent capital investment for automation and equipment upgrade should improve our production efficiency and reduce cost,” Alliance Select Chief Executive Officer Raymond K.H. See said.

Last year, the company’s net loss widened to $10.24 million from $5.08 million the previous year.

Full-year net revenues went down by 26% year on year to $62.71 million from $84.88 million due to lower fish costs in other regions, resulting in lower sales prices.

The company said during its stockholders’ meeting on Wednesday that it continued to secure more orders to counteract the decline.

In 2020, Alliance Foods earned the top spot in the Greenpeace Southeast Asia’s Tuna Cannery Ranking Report for sustainability practices. It was ranked first in the Philippines for the second consecutive year, and third in Southeast Asia.

“[Alliance Select] aims to sustain its growth trajectory despite the challenges brought by the COVID-19 pandemic,” Mr. See said.

On Wednesday, stocks of Alliance Select at the local bourse went up by 8.06% or five centavos to close at 67 centavos each. — Keren Concepcion G. Valmonte

Are Filipinos drinking the same wines the world is drinking?

YELLOW TAIL, Barefoot, and Gato Negro are among the world’s most powerful wine brands.

WHEN I started my wine career working for a huge winery over two decades ago, I got my training in California. Back then, the wine brands I was familiar with were mostly those available in Philippines and those seen in North America as I traveled to both the US and Canada in the mid to late 1990s. I remember that back then, Blue Nun, Mateus, Carlo Rossi, and Gato Negro were among the more visible wine brands in Manila, while in North America, the wine scene was obviously dominated by Californian brands Like Gallo, Kendall-Jackson, Mondavi, and jug wines like Carlo Rossi, Almaden, and Inglenook.

Back in the 1990s, the internet was a relatively new technology, and Google only started in 1998, so it was quite hard to know what wine brands the world was drinking. Bit since then, in my travels to Asia, to almost all of Southeast Asia, China, Japan, Korea, I started to get a better “feel” of what wine brands are popular and available in the different countries.

With the Philippines fortunately having one of the most reasonable taxes imposed on wine, and since almost 100% of wines are imported, there is actually no scarcity of brands, varietals, wine regions, and wine producing countries in our ever-growing selection. This is despite the fact our country’s wine consumption is literally only a trickle (100 ml. per capita consumption) compared to our neighbors like Hong Kong, Taiwan, Singapore, and even Thailand. Choices galore for a small, albeit growing wine market.

Are you therefore not curious about what wine brands the world in general is drinking, and if these brands are also available locally?

WINE CONSUMPTION DURING THE PANDEMIC
Based on numbers released by the International Organization of Vine and Wine (OIV), headquartered in Paris, global wine consumption was down 3% in 2020, the start of the pandemic crisis. While wine consumption in richer First World countries like the US and Australia is slightly up, in rest of the world, including Europe and Asia, it is mostly down, with poorer countries like the Philippines suffering huge wine consumption cuts.

The hospitality (on-premise) sector was a significant reason as this distribution segment was either totally or partially shut down during the pandemic. However, from the demise of on-premise wine consumption, the notable rise of e-commerce and the strengthening of the retail segment made the final number of -3% look tolerable given the coronavirus disease 2019 (COVID-19) circumstances.

The Philippines was in the same boat as the global market was since the hospitality sector here was almost non-existent in 2020 — plus we had to deal with liquor bans too. The e-commerce/online wine business became a major wine distribution segment, and retail, when not dealing with the liquor bans, continues to be steady.

Though still less than half way in, 2021 is expected to be a decent recovery year, especially if the world gets a good percentage of the population vaccinated.

THE GLOBAL WINE BRAND POWER INDEX AND ITS METHODOLOGY
In 2018, Wine Intelligence, a London-based wine specialist research company which was established in 2002, started its annual series, the Global Wine Brand Power Index. The initial study was based on inputs from 16,000 wine consumers in 15 key global wine markets, statistically representing 380 million wine drinkers. The initial 15 key markets used as a basis were Australia, Brazil, Canada, Chile, China, France, Germany, Ireland, Japan, Portugal, South Korea, Spain, Sweden, the United Kingdom, and the USA. This was the first study of its kind which was not purely based on sales volumes but also on other factors like awareness, purchase loyalty, and brand connection.

Wine Intelligence created Vinitrac, its patented global survey methodology for wine drinkers, which monitors and tracks the attitudes and behaviors of wine consumers around the world.

There are six major brand health factors taken into consideration namely: brand awareness, purchase, conversion, consideration, brand affinity, and recommendation.

THE 2021 EDITION
Just recently, Wine Intelligence announced the result of its Global Wine Brand Power Index for 2021. This is their 4th report and is much bigger in scope. The 2021 report was collated from surveys conducted with over 25,000 wine consumers in 25 key global markets/countries. The original 15 countries included in the initial Global Wine Brand Power Index of 2018 were joined by Belgium, Columbia, Finland, Mexico, and Netherlands in the last two years, and in 2021, another five additional countries were added. Three of the five new markets added are also staunch wine producing countries like Argentina, New Zealand, and Italy. Key wine markets like Russia and our fellow Southeast Asian neighbor Singapore, made up the last two markets of the 25 countries in this 2021 elaborate study.

The 25,000+ wine consumers in 25 countries surveyed represent over 435 million wine drinkers globally. This study can be purchased at the official Wine Intelligence website https://www.wineintelligence.com/downloads/global-wine-brand-power-index-2021/

It should, however, be noted that wine producing countries in the survey will probably have home-grown local brands topping this Brand Power index, so what is going to be interesting to see is how these big local brands perform outside of their home base and against other international brands. For example, China has Great Wall and Changyu as its top wine brands, both huge wineries predominantly supplying domestic consumption. Yet around 40% of wines in the Chinese market are still imported, so in the Global Wine Brand Power Index, several international wine brands would make the survey conducted in China.

WORLD’S TOP 10 MOST POWERFUL WINE BRANDS FOR 2021
Here are the Top 10 most powerful wine brands based on the Wine Intelligence’ Global Wine Brand Power Index this year. It is not surprising that all the top 10 wine brands are also present in the Philippines. The list below includes the wine’s country of origin and the name of the importer-distributor of these brands locally.

• #1 Yellow Tail — from Australia, Golden Wines, Inc.

• #2 Casillero de Diablo — from Chile, Fly Ace Corp.

• #3 Jacob’s Creek — from Australia, Pernod Ricard Philippines, Inc.

• #4 Gallo Family Vineyards — from USA, Emperador Distillers. Inc.

• #5 Barefoot — from USA, Emperador Distillers, Inc.

• #6 Gato Negro — from Chile, Golden Wines, Inc.

• #7 JP Chenet — from France, BestWorld Beverage Brands, Inc.

• #8 Mouton Cadet — from France, Titania Wine Cellar, Inc.

• #9 Vina Santa Carolina — from Chile, Premier Wine & Spirits, Inc.

• #10 Torres — from Spain, Future Trade International Inc.

Since the start of this series, Yellow Tail and Casillero de Diablo have kept their first and second place power brand rankings respectively, while Gallo and Jacob’s Creek have been contesting the third and fourth spot throughout the four years of this series.

Filipino consumers can easily find these brands in regular retail outlets. Except for Mouton Cadet, the other nine wine brands are selling at below P1,000 per bottle, with most of them — from Yellow Tail, Gallo, Barefoot, Gato Negro, JP Chenet to Vina Santa Carolina — retailing at the sub-P500 per bottle range.

New World wine countries like Australia, Chile, and the US comprised seven of the Top 10 power wine brand origins.

It is nice to know that Filipinos, despite being at the infancy stage of the wine drinking culture, still have access to the most powerful wine brands the world is drinking.

Which brands from the above top 10 list do you drink, or do you have a different preferred brand? Let me know ….

The author is the only Filipino member of the UK-based Circle of Wine Writers. For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, e-mail the author at protegeinc@yahoo.com or via Twitter at www.twitter.com/sherwinlao

PHL firms focusing on data and analytics amid pandemic crisis

By Arjay L. Balinbin, Senior Reporter

MORE Philippine companies are looking at leveraging on data and analytics during the pandemic, which has spurred digital transformation across industries, SAS Philippines said.

“I think now I would not be able to pinpoint one barrier to entry because all of conversations I’ve had, whether it’s big enterprise, government, or small enterprise, everyone is talking about what else they can do with the data they have,” SAS Managing Director for the Philippines Maria Aileen Rodriguez told BusinessWorld in an online interview on June 10.

“Now is the best time to be in the Philippines working with data and analytics because everyone is curious. Everyone is curious and very open to do things differently,” she added.

Ms. Rodriguez also noted the barriers to adopting data and analytics have been brought down due to the pandemic crisis.

“Before, I would hear budget constraints; however, today everyone would say that as long as you show us value so that we can optimize the data that they have produced because of the rush to digitalization, they are open to hear us. Also, before, there were less people who were looking at the possibilities of software as a service, now it’s a board-level discussion.”

SAS, which has been operating in the Philippines for 30 years, has seen different requests and requirements from local businesses starting last year.

“For example, they sometimes think of SAS as something intended for big enterprises and government units; lately, because of the onslaught of everybody going into some form of digitalization, we had to realign our offerings to make them more easily consumed,” Mr. Rodriguez explained.

“We call this realignment some sort of t-shirt sizing. When you talk of t-shirts, there are small, medium and large sizes, and these are really about creating starter kits — not only for big enterprises, but also for medium and small enterprises who are with us in painting the journey of transformation.”

“Starter kits are not just small in terms of price. That’s not the point. Starter kits are really complete offerings — software services and education that bring everybody to a point where they can imagine the future and start this new kind of work, the way we reimagined things to be for 2021 and beyond as we go through this pandemic.”

Asked if businesses are now more interested in cloud software solutions than on-premise, she said: “Some people still prefer on-premise, while some prefer everything on the cloud; however, there are also some people who are somewhere in between or hybrid.”

“Though cloud has been like one of the buzzwords that you hear for the last few years even before the pandemic, I would say that a lot of people are still approaching it with caution, only because it’s new. A lot of people are dipping into the cloud in bits like they are not dipping the whole enterprise into the cloud,” she added.